Economic and market news
In Australian news this week, new monthly headline inflation data show that prices rose by 3.5 per cent in the 12 months to end-July, decelerating from 3.8 per cent in the year to end-June. This was in part due to the Commonwealth Government’s energy rebates. Commentators welcomed the news that price pressures had eased in the month, but cautioned also that it was by less than had been hoped.
New data on retail turnover show growth in activity was unchanged in July 2024 at 0.5 per cent. This was the same rate as seen in both May and June.
Separately, private sector wages data for the June quarter showed the lowest growth in two years (5.3 per cent), a deceleration from 6.6 per cent in the three months to end-March. This outturn prompted economists to predict that new national accounts data will reveal the slowest rate of GDP growth since the early 1990s recession, excluding the pandemic downturn, and the sixth consecutive quarter in which GDP declined on a per-person basis.
In overseas economic news, jobless claims numbers in the United States are reportedly falling slightly (down by 2000 to 231,000 last week). These weekly filings for unemployment benefits remain low by historic standards, but have ticked up since May.
Australian indices
ASX 200: Rose 0.40 per cent over the week to close at 8103.2 points on Tuesday.
All Ordinaries: Also rose, 0.31 per cent in the period, to close at 8322.7 points on Tuesday.
Government Bonds
Government Bond Yields (Source: Bloomberg)
|
NAME |
COUPON |
PRICE |
YIELD |
1 DAY |
1 MONTH |
1 YEAR |
|
GTAUD2Y:GOV Australia Bond 2 Year Yield |
4.25
|
100.83 |
3.71% |
-1 |
-8 |
-6 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
3.25 |
98.38 |
3.63% |
-1 |
-7 |
-14 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.75 |
97.99 |
4.00% |
-1 |
-5 |
0 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
89.18 |
4.23% |
-1 |
-5 |
-2 |
Reserve Bank of Australia (Source:RBA)
|
RBA CASH RATE TARGET (RBATCTR:IND) CURRENT (per cent) |
MOST RECENT DECISION (percentage points) |
MOST RECENT CHANGE (percentage points) |
1 YEAR PRIOR (per cent) |
|
4.35 |
+0 (6 August 2024) |
+0.25 (7 November 2023) |
4.10 |
Currencies (Source:RBA)
As at the close on 3 September the AUD/USD had fallen another 0.68 per cent over the week, closing at 0.6741 on Tuesday. The AUD/RMB had also fallen, 0.73 per cent, in the period, closing at 4.8001 on Tuesday.
Venture Capital
ENA Respiratory
Stoic investee ENA Respiratory announced that the Phase Ib clinical study of its dry powder formulation of INNA-051, a Intranasal Innate Immunomodulator, is up and running in Australia.
The study will recruit up to 40 participants and is being conducted at the Scientia Clinical Research facility in Sydney. Results are expected in later in the year.
Wildlife Drones
Stoic investee Wildlife Drones is this week hosting a webinar to talk about its cutting-edge wildlife conservation technology and fieldwork insights. Dive in and register now!
Property
In property news this week, clearance rates softened slightly amid a seasonal surge in properties up for auction. The national auction clearance rate was 70.2 per cent, down from 71.4 per cent the week before, and below the 71.1 per cent average for the same period.
However, this outturn was amid a high level of activity with 2,252 auctions held across the capital cities, the highest volume of properties going under the hammer since the first week of June. A similarly high number of auctions are expected this coming week.
